financial portfolio management

Financial Portfolio Management System Visual FPM

Visual FPM © 2010 Computer Design 1

Financial Portfolio

Management



Company Information

Computer Design has one of the longest track records in developing investment management software systems. Founded in 1987 with offices in London and Geneva, Computer Design focuses exclusively on developing and supporting its flagship product, the Financial Portfolio Management System (FPM). FPM is designed to provide integrated solutions for:

• Private client portfolio managers

• Institutional investment managers

• Family offices

• Hedge funds

• Investment trusts

• Dealer - Brokers FPM users can be found amongst each one of these investment industry types. FPM has passed through a number of cycles of development since 1987 and the system has always remained in the cutting edge of computer technology. The present product, VisualFPM runs on Windows 7 / XP / Windows Server 2003 / 2008 platforms with SQL Server or Visual Foxpro 9 database. Computer Design’s top priority is to provide the best possible service to its users by maintaining a well trained and accessible support and consultancy service. Our consultants are knowledgeable not just in computer technology but also in the traditions and practices of the investment management industry.



Product Information

Visual FPM comprises a suite of modules which can be configured in a flexible manner to provide integrated straight-through -processing solutions stretching from the front office to the back office.

A common database lies at the core of the system.

FPM Database is shared by all departments avoiding

duplication of input and ensuring consistency.

Financial Instruments

• Cash Management

• Fixed Interest

• Time Deposits

• Equity

• Futures and Options

• Foreign Exchange

Operations

• Order Processing

• Portfolio Management

• Deal Wizard

Risk and Performance

• Compliance

• Performance Measurement

Investment Accounting

• General Ledger Module

• Oracle Financials Interface

• Security Accounting Module

• Tax Reporting

Reporting & Microsoft Office Interfaces

• Document Management

• Outlook Interface

• Excel Interface

• Visualiser

• Input Automation

Data Feeds

• Bloomberg Data Licence

• Bloomberg DDE

• FT Select

• SWIFT Trade Settlement

Security and Internet Access

• Access Privileges

• CloudFPM

• WebFPM



FPM Modules Financial Instruments

Cash Management

The Cash Management Module provides comprehensive integrated cash management functionality. The module handles multi-currency cash movements arising from all transactions such as purchases, sales, placements, redemptions, income, expense, foreign currency transactions, transfers, Cash accounts can be set up as interest bearing call accounts where accrued interest can be computed over any time period with varying balances, interest rates and accrual patterns. Present and projected cash balances can be viewed in real time enabling the traders/account managers to keep a close watch on liquidity and credit limits at pre-trade stage.

Fixed Interest

FPM can handle fixed interest securities of all types, ranging from plain vanilla bonds to short term money market instruments.The characteristics of commonly traded bonds and money market instruments are kept in the FPM database. Prices can be computed from the yield curve or from related data (price, yield or discount) obtained from a data feed service. Accrued interest is calculated from industry standard accrual patterns. Mathematical tools are available for computation of maturity yield and duration. Portfolios can be analysed by user defined maturity and yield bands and weight average life, duration, maturity yield

Time Deposits

The Time Deposits Module handles various types of fixed (time)

deposits such as fiduciary deposits, call deposits, loans / borrowings.

Placements, maturities and roll-overs are automatically posted into the

General Ledger.Reports are available for cash flow projections, maturity

band analysis and representation of counterparty, currency and interest

rate risks.

Equities

The maturity of an equity system can be judged from its capabilities in

handling reconstructions/corporate actions. Downstream consequences

of reconstructions from the view point of tax rules can overwhelm most

systems. Automated functions are available to handle corporate actions

and dividend entitlements across holders . All actions are processed in

sequence with the actual date events/stages. For example, trade date

to settlement date off-set is automatically applied on deal capture and

amounts pending settlement are shown on bank account statements

on-line. Similarly dividends pending can be posted into accrual accounts

on ex-div date and then passed to bank accounts subsequently.



FPM Modules Financial Instruments

Derivatives

FPM can handle all types of derivatives including standard commodity, index and financial futures, options, CFDs and forward currency contracts. The module has integrated client reporting ,margin management, incentive and management fee calculations. Accounting functions such as P&L, fee accruals can be performed through the General Leder Module

Foreign Exchange

The FX Module provides trade capture functions for deliverable foreign exchange contracts such as spots (eg for the settlement of equity bond trades in a foreign currency) and forward currency as well as for hedge trades. Open positions can be valued with forward rates derived from forward interest rate differentials. Forward currency valuations can be consolidated with exchange traded contract (futures / options), money market and equity positions to enable total currency and counterparty risk assessment.



FPM Modules

Operations

Order Management

FPM Order Management Module can be used by dealers/investment managers The module provides functions for deal recording, compliance and back office integration. Users can record the detail of

orders and track the confirmation process on the "dealing pad form”. The status of the orders can be monitored across all workstations in the dealing room. The module enables dealers to share a common database with the back office and provides on-line access to client actual cash and investment positions and limits. Deals are verified for being in compliance with client mandates at pre-order stage. Intended and Actual Allocations are distributed to clients automatically. Allocated deals are sent to the back office electronically for the computation of contract details

(charges, commissions, etc), for printing the contract notes and to start the settlement process. The database can be drilled into for compliance checking through the integrated report generator.

Portfolio Management

The Portfolio Management Module comprises a number of functions that enables pro-active management and administration of client portfolios. User friendly query screens are available to view portfolios across clients on-line individually or on consolidated basis (eg portfolios of family members). Liquidity / asset allocation data is available on-line.

Deal Wizard

This module generates bulk buy / sell orders to rebalance client portfolios against a trade ideas list (ideal portfolio composition). The orders can be validated against client investment guidelines and piped directly into the order management system for execution.



FPM Modules

Investment Accounting General Ledger

The General Ledger Module provides multi-currency / multi-instrument

accounting functionality. GL can be used as a self contained

accounting module or in conjunction with an external general ledger

package. If the latter option is adopted GL can export trial balance

movements to matching accounts on the external GL with the frequency

dictated by the user. The GL Module is fully integrated with the financial

instrument modules. The GL Module takes its input from the

transaction database and requires no further input. Thus, once

transactions are posted through the usual input screens for deal, cash,

corporate actions, etc, the general ledger is updated. The Chart of

Accounts is configured by the user. Multi-currency trial balance and

balance sheets are produced from the transaction database by means

of a combination of user defined journals and system journals.

Oracle Financials Interface

This module is required for downloading data to Oracle Financials in

accordance with a parametrically defined configuration system which

maps FPM’s Chart of Accounts to Oracle’s Chart of Accounts.

Downloads can be made with the frequency chosen by the user.

Security controls are implemented to avoid passing corrupt data.

Security Accounting

This module is a cut down version of the GL module and would suit

users who would like to do investment accounting without the

complication of setting up a full double entry GL system.

Tax Reports

FPM contains a number of special tax reporting modules dedicated to specific countries. The US Tax Module provides a report in accordance with the rules of the US taxation concerning the treatment of long and short term capital gains and the application of FIFO principles. The UK Tax Module provides a tax return in accordance with the rules of UK Inland Revenue (retail price indexation). Special attention is paid to the effect of capital reconstructions and client associations in computing the indexed cost of "pools". A range of report styles are available off-the-shelf which can be further customised by the end user through the report generator. The Norway Tax Module provides reports in accordance with the rules of the Norwegian taxation system concerning the RISK method and FIFO principles. Witholding tax on dividends can be handled for all European countries (eg rebates in accordance with French system “Avoir Fiscal”).



FPM Modules

Risk and Performance

Compliance

The Compliance Module allows the users to set up compliance rules for monitoring client and investment policy mandates. Rules can be defined in a flexible manner as target percentages by asset type, country, region, etc, or by an individually selected basket of securities. Complex rules can be entered for individual or family members as a group. Rules can contain Boolean expressions (compositie of several rules). Target percentages can be expressed on value or exposure basis (ie for portfolios containing derivatives). The Module can be used pro-actively from the Order Management Module to warn limit breaches at pre- trade entry stage. The system can also be used as a Limit Breach / Compliance Reporting system with full audit (client limits as of historic date) and back dated reporting capabilities (compliance between user defined historic dates).

Performance Measurement and Attribution

The module offers AIMR-GIPS compliant performance

measurement functions. including automatic compensation of

inflows/outflows. Performance of individual clients or groups of

clients can be computed automatically from transaction database

(full integration with the accounting database). Portfolio

performance can be compared against user selected benchmark

indices over a user selected time interval or with reference to

milestone dates (inception, end of year, end of

month, etc). The Performance Module interfaces

with the Graphics Module to produce presentation

quality graphs which can be included in the Client

Report Book

Performance attribution function allows users to define portfolio segments and composites. Performance attribution/contribution can then be determined across these segments. Users can also define composite Benchmarks based on a basket of standard indices with user defined weights. FPM can provide performance attribution on an absolute

or relative basis against related benchmarks for portfolio composites, segments and at security level. The function can handle all types of instruments including bonds and derivatives (eg effect of derivatives on performance). The effects of cash / fees / dividend / transaction movements are time weighted automatically in accordance with AIMR-GIPS standards for providing performance measurement over any time period net/gross of user defined movement types.



FPM Modules

Reporting

Report Generator

FPM includes a powerful report generator which allows users to design and maintain their own reports. Two different report generator functions are bundled with the base module. The text report generator allows the user to set up reports within minutes to drill down into the database. Valuation, transaction, cash statement, performance, general ledger reports can be set up with great ease. Text reports can be exported to Excel or CSV files at the press of a button. The graphical report generator which is also provided as a standard, allows the user to set up presentation quality reports which may include static graphics images (eg letterheads and logos) or dynamic charges (eg Excel charts) which depend on the data content of the report. For example a valuation report can include an asset allocation pie chart, a performance report can include a line chart.

Document Management

The Document Management Module enables archiving and retrieval of reports in Excel, HTML, PDF (Acrobat) and Text formats. A keyword index allows easy retrieval and display of the reports for viewing on the screen or for hard copy printouts. The module also includes a scheduler for publishing a set of reports (eg the Client Report Book) at the press of a button. Each CRB may be composed of a unique set of reports as per client requirements and will be published in a preset order (ready to drop in the envelope). You may also publish and bind CRBs as Acrobat Files and deliver them to your clients via FPM Microsoft Outlook Interface.



FPM Modules

Microsoft Office Interfaces

Outlook Interface

Outlook Interface Module provides the right tool for electronic reporting to your clients. FPM reports saved in Acrobat PDF format into the Outbox automatically. The attachment files can be protected by common encrypting tools before transmission. We believe this is a secure and productive method of transmitting sensitive information to clients on the Internet. It puts the sender in control and requires minimum new investment.

Excel Interface

All FPM reports can be output to Excel format files at the press of a

button. The Excel Interface paves the way for huge productivity gains

in performance attribution and compliance monitoring tasks. Many

users are already highly advanced in these areas and run

sophisticated Excel applications. These applications suffer from lack

of automated data interfaces. FPM gives a new lease of life to such

applications by delivering the data automatically from the transaction

database

FPM Visualiser

The Visualiser Module allows charts to be drawn through Excel. The drawing procedure is completely automated. Charts can be embedded into discrete reports (integrated with the Report Generator function) or drawn separately and collated with other reports (Scheduler function). Charts can be designed either from Excel through the usual Chart Wizard or from inside FPM by updating a simple Graphics Properties table. Data series can be exported from the database and report generators through the relevant business functions such as Performance Attribution or Client Reporting.

Input Automation

Input Automation Module is used for importing trades, dividends, cash movements from computer files (eg Excel). This module is ideal for interfacing FPM to other front office systems or to electronic custodian, prime broker, banking services



FPM Modules

Data Feed and Custodian Interface

Interfaces are available for a number of data feed providers including

Bloomberg, FT Interactive Data and Reuters. The selection of service is

left to the user but the common objective of the interface is to download

prices, exchange rates, indices and corporate actions into the FPM

database. The frequency of the update and the delivery method

depends on the particular service.

Bloomberg Data License

This is a request based service working interactively on the Internet.

FPM provides a direct and fully automated interface to Bloomberg Data

Licence (per Security) service through internet FTP calls. Downloaded

data items are automatically mapped into the appropriate FPM tables.

Any data item can be downloaded for any international security including

Daily and Historical Prices, Exchange Rates, Indices, Corporate Actions

and Dividends.

Bloomberg DDE An interface is available to the Bloomberg Terminal via Excel Add-in

DDE. The interface will download data in real time.

FT Interactive Data

This is a batch service whereby a pre-configured set of data items are

made available for downloading from the Internet. Site of FT Interactive

Data. Data available includes Daily and Historical Prices, Exchange

Rates, Indices, Corporate Actions and Dividends.

SWIFT Trade Settlement Instruction FPM can output a trade settlement file in SWIFT message structure. The

module can be customised easily for an STP interface directly with your

custodian bank(s).



FPM Modules

Security and Internet Access

Access Privileges

FPM has an advanced system for configuring access privileges for each login session by function (ie which functions a user can access) and/or by client (eg which client portfolios a user can access). A complete audit of user access into the system is maintained and can be reported with date and time stamps

cloudFPM cloudFPM provides full Internet connectivity to the FPM system via a thin client platform (such as Windows Terminal Services). FPM application can be hosted on your own remote server or on a service provider such as Amazon

WebFPM

WebFPM is a Web portal which provides access to reports published from FPM master. With WebFPM, your clients and/or users may view and download their reports on-line in CSV, XLS, HTML or PDF format. Report books can published through the FPM Scheduler at pre-set times.



Services Ultimately, the success of an investment management system depends on the success of the implementation project. Computer Design executes implementation projects with a proven methodology founded on its deep product knowledge and industry experience. The methodology is customised for specific requirements and a joint action plan is detailed together with the user before each project. Computer Design warrants to complete implementation projects on time and within budget.

Computer Design

Headquarters 109 Gloucester Road

South Kensington London SW7 4SS

Tel:+44 (0)20 7370 3980 Fax:+44 (0)20 7341 7888

Geneva Branch Office

2 Rue de la Faïencerie 1227 Carouge, Switzerland

Tel:+41 (0)22 301 54 86 Fax:+41 (0) 22 301 54 88

Internet

www.computerdesign.co.uk e-mail: [email protected]

Maintenance and Support Computer Design provides an all inclusive

maintenance service supported by a team of

support professionals who are highly experienced in

the underlying computer technology and the

investment business. Accessibility and experience

of the support staff is considered to be the

cornerstone of the continuing success of the

company. There are no different grades for the

compulsory maintenance and support contract on

the FPM system. All our clients receive the same

four hour response service.

Customisation Computer Design’s policy is to advance the

functionality of the system in response to our clients’

requirements. Our objective is to generalise specific

customisation requirements and to turn them into

universal modules. Great care is taken in

customising the system to safeguard the integrity of

the general program and data structure foundation

of the FPM system.

Implementation and Training We provide on-the-job assistance during the

implementation of new systems. Every project,

whatever its size, is weighed on its merits and an

implementation plan is jointly agreed with our clients

before the start of the project. For new

implementations our policy is to start with a

prototyping / case study which allows us to assess

the customisation requirements.

Hot Line The hot-line is open between 9 am to 6 pm GMT for

direct telephone support. We also maintain an

Internet based support line round the clock.

Licence and Maintenance Fees The commercial terms for the use of the system

reflect our commitment to the long term

maintenance and enhancement of the product.

There is no up front sale price for the product and

the licence and maintenance fee is charged as a

combined recurrent annual fee.

Demonstration The information provided in this document gives an

outline of the capabilities of the system. For further

information or for a demonstration please send us

an e-mail at [email protected].

financial portfolio management

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